Beach First National Bancshares (BFNB) 8-K Financial statements and exhibits

Exhibit 99.1

Contact:   Walt Standish, President and Chief Executive Officer
                   843.916.7813
                   Dick Burch, Senior Vice President and Chief Financial Officer
                   843.916.7806

FOR IMMEDIATE RELEASE

Beach First Announces 2^nd Quarter Earnings Growth of 57%

Myrtle Beach, SC, July 20, 2004 - Beach First National Bancshares, Inc. today announced that its second quarter earnings increased 57%.

Net income for the quarter ended June 30, 2004, totaled $329,999, an increase of 57% when compared to the $210,456, reported for the same period a year ago. Total assets grew to $197.2 million, which represents an increase of 30.5% from the same period a year ago. Total deposits grew to $159.5 million, an increase of 23.6% from the same period a year ago. Total loans grew to $155.4 million, a 31.5% increase from the same period a year ago.

Net income for the six months ended June 30, 2004, totaled $637,648, an increase of 54% when compared to the $413,484, reported for the same period a year ago.

Walt Standish, president and chief executive officer, said, “Beach First’s financial performance can be attributed to overall growth in the balance sheet along with favorable economic conditions in the tourism-driven markets that the bank serves. In the second quarter, we expanded our internet banking product to include a bill payment feature which is offered free to Beach First customers, and made final preparations to open a new branch office in the Waccamaw Neck area.”

Beach First National Bancshares, Inc. is the parent of Beach First National Bank, a $202 million financial institution headquartered in Myrtle Beach, South Carolina. Beach First operates offices in Myrtle Beach, Surfside Beach, North Myrtle Beach, Pawleys Island, and Hilton Head Island, South Carolina. Beach First offers a full line of banking products and services, including NetTeller internet banking. The company’s stock trades under the symbol BFNB.

Beach First National Bancshares, Inc. and Subsidiary
Myrtle Beach, South Carolina
Consolidated Balance Sheets

	June 30,					December 31,
	2004			2003		2003
	(unaudited)			(unaudited)		(audited)
ASSETS
Cash and due from banks	$	4,166,123		$	5,164,565	$	4,886,682
Federal funds sold and short term investments		2,201,000			6,963,000		4,598,520
Investment securities available for sale		26,952,269			12,847,087		11,918,074
Loans, net		153,344,159			116,652,441		133,851,712
Federal Reserve Bank stock		309,000			164,700		309,000
Federal Home Loan Bank stock		825,000			325,000		575,000
Premises and equipment, net		4,393,569			4,417,109		4,477,943
Cash value life insurance		3,153,760			2,999,380		3,076,570
Investment in BFNB Trust		155,000
Other assets		1,722,037			1,554,572		1,399,535
Total assets	$	197,221,917		$	151,087,854	$	165,093,036
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits
Noninterest bearing deposits	$	32,353,558		$	24,980,944	$	23,454,124
Interest bearing deposits		127,195,540			104,082,120		114,645,442
Total deposits		159,549,098			129,063,064		138,099,566
Advances from Federal Home Loan Bank		16,500,000			6,500,000		11,500,000
Debt associated with Trust Preferred Securities		5,155,000			-		-
Other liabilities		809,760			1,201,760		760,577
Total liabilities		182,013,858			136,764,824		150,360,143
SHAREHOLDERS' EQUITY:
Common stock, $1 par value; 10,000,000 shares
authorized; shares issued and outstanding - 2,013,008 at
June 30, 2004, 1,318,368 at June 30, 2003 and
1,323,768 at December 31, 2003		2,013,008			1,318,368		1,323,768
Paid-in capital		11,332,816			11,787,899		11,837,299
Retained earnings		2,356,553			1,122,874		1,718,321
Accumulated other comprehensive income		(494,318	)		93,889		(146,495	)
Total shareholders' equity		15,208,059			14,323,030		14,732,893
Total liabilities and shareholders' equity	$	197,221,917		$	151,087,854	$	165,093,036

Beach First National Bancshares, Inc. and Subsidiary
Myrtle Beach, South Carolina
Consolidated Statements of Income
(Unaudited)

	Six Months Ended					Three Months Ended
	June 30,					June 30,
	2004			2003		2004		2003
INTEREST INCOME
Interest and fees on loans	$	4,595,944		$	3,627,619	$	2,373,367	$	1,904,147
Investment securities		386,430			256,437		232,755		142,221
Fed funds sold & short term investments		28,915			25,178		12,773		17,053
Total interest income		5,011,288			3,909,234		2,618,895		2,063,421
INTEREST EXPENSE
Deposits		1,143,362			1,163,999		570,185		605,333
Short-term borrowings		182,281			93,399		98,021		48,587
Long-term borrowings		19,436			-		19,436		-
Total interest expense		1,345,079			1,257,398		687,642		653,920
Net interest income		3,666,209			2,651,836		1,931,253		1,409,501
PROVISION FOR POSSIBLE LOAN
LOSSES		508,000			291,000		293,000		223,000
Net interest income after provision
for possible loan losses		3,158,209			2,360,836		1,638,253		1,186,501
NONINTEREST INCOME
Service fees on deposit accounts		263,937			246,897		132,847		125,515
Gain (Loss) on sale of investment securities		(5	)		134,811		1		61,463
Other income		210,619			199,702		113,938		112,068
Total noninterest income		474,552			581,410		246,786		299,046
NONINTEREST EXPENSES
Salaries and wages		1,169,128			983,454		614,278		500,324
Employee benefits		237,469			197,571		114,750		98,720
Supplies and printing		36,573			57,270		18,044		27,825
Advertising and public relations		116,064			77,315		66,576		35,387
Legal and Professional fees		92,933			61,135		46,294		24,991
Depreciation and amortization		217,123			211,217		108,870		106,220
Occupancy		210,608			172,282		103,262		85,510
Data processing fees		168,094			145,135		84,083		78,295
Other operating expenses		364,800			380,735		197,241		194,351
Total noninterest expenses		2,612,790			2,286,114		1,353,398		1,151,623
Income before income taxes		1,019,971			656,132		531,640		333,923
INCOME TAX EXPENSE		382,323			242,648		201,641		123,467
Net income	$	637,648		$	413,484	$	329,999	$	210,456
BASIC NET INCOME PER COMMON
SHARE	$	.32		$	.21	$	.16	$	.11
DILUTED NET INCOME PER COMMON
SHARE	$	.31		$	.21	$	.16	$	.11
Weighted average common shares outstanding - basic		2,013,008			1,977,552		2,013,008		1,977,552
Weighted average common shares outstanding - diluted		2,047,709			2,000,031		2,047,709		2,000,031